DigitalOcean Holdings, Inc. (DOCN)

DigitalOcean rents servers to small teams — a cloud built more simply than the giants'.

Large cloud platforms offer hundreds of services and a pricing grid in which a small team easily gets lost and overpays. The company did the opposite: a limited set of understandable products, predictable pricing and documentation that lets a developer bring up a server in minutes.

The customers are start-ups, independent developers and small companies. That is both the advantage and the vulnerability: such a customer grows and at a certain size moves to a large platform for specialised services. A separate bet is renting compute for model training. Risks: competition from the giants and the loss of customers that outgrow it. The company pays no dividend but buys back stock.